Banks in Discussions for Onshore Syndicated Loan to Help Vanke Address Liquidity Needs After Meetings With Regulators on Increasing Financing Support

A group of Chinese state-owned and joint-stock commercial banks are discussing an onshore syndicated loan for China Vanke Co. Ltd. to help the developer address its liquidity needs, after regulators in Beijing met with the lenders last week asking them to enhance financing support, according to three sources familiar with the matter.

Industrial Bank of China, Postal Savings Bank of China, China Merchants Bank and Ping An Bank, among others, are the banks involved in the talks, sources said.

Banks are more likely to request the company to provide collateral for related loans while the final drawdown amount of the loan would likely be determined based on the guarantee conditions, said the sources.

The loans will most likely be in the form of operating property loans, sources noted.

The Shenzhen regulators had also arranged meetings with several major banks to discuss potential support for Vanke in the past few weeks, according to the first two sources.

Vanke didn’t respond to requests for comment.

Below is China Vanke's capital structure: